Q2 FY27 results analysis · November 06, 2026
KIOCL Q2 FY27 Results Analysis: Returns to Profit, Revenue Rises 26%
+25.0%Revenue year on year, Rs. 202.96 Cr
Source: Quarterly results filing (BSE)
Quick summary
KIOCL Ltd's Q2 FY27 numbers came in mixed. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 06, 2026 |
|---|---|
| Revenue (Q2) | Rs. 202.96 Cr (+25.04% YoY) |
| PAT (Q2) | Rs. 5.02 Cr |
| EBITDA margin | -3.16% (+1329 bps YoY) |
| EPS (Q2) | Rs. 0.08 |
Quarter Snapshot
KIOCL returned to quarterly profitability with PAT of Rs.5.02 cr (EPS Rs.0.08) after losses in Q1FY27 and Q2FY26, on revenue up 26.21% YoY led by conversion services (+77.33% QoQ). However, core EBITDA ex-treasury remains negative at Rs.(5.68) cr, with PAT carried by Rs.23.06 cr of other income, and power costs surged 57.56% QoQ. No company-issued guidance exists in the filing, so no beat can be scored; the NMDC agreement renewal, DR-grade clarity, and Devadari milestones remain open levers.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue "in-line to ahead on volume" | conversion flow indicators pointing up | +13.85% QoQ, +26.21% YoY to Rs.179.90 cr — ahead | Played out |
| Operating margin "likely compressing" on power | IEX spot spike feeding the largest cost line | Power +57.56% QoQ, 53.37% of revenue vs 38.57% in Q1; yet EBITDA improved to Rs.(5.68) cr from Rs.(26.59) cr — pressure was real; the drawdown of low-cost inventory and cost cuts offset it | Partially |
| Treasury income as "the most plausible bridge back toward profit" | flat repo, firm yields on the cash pile | Other income Rs.23.06 cr; PAT +Rs.5.02 cr | Played out |
| Conversion run-rate vs 3–3.3 MT target | ~7.5–8.25 lakh t/quarter implied | Not addressed in the filing — remains open for the call | Not observable |
| DR-grade (67% Fe) clarity "by Q2" | open question from pre-call note | Not addressed in the filing — remains open | Not observable |
| NMDC agreement renewal (expiry 28 November 2026) | "single biggest swing item" | Not addressed in the filing — remains open for the call | Not observable |
| Devadari milestones (working permission, approach road) | Stage-I approval July 2026; permission pending | Not addressed in the filing — remains open | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| "Returning to profitability marks the foundation, not the finish line" (Chairman, FY26 reporting) | FY26 annual report / MD&A | Q2FY27 PAT +Rs.5.02 cr after Q1's Rs.(15.48) cr loss; Q2 revenue +26.21% YoY — though ex-treasury EBITDA is still Rs.(5.68) cr | Confirmed for the quarter |
| Cost rationalization as the turnaround underpinning | FY26 annual report / MD&A | Employee costs −5.22% YoY, other expenses −23.30% YoY, D&A −17.99% YoY | Confirmed |
| Treasury operations as a profit pillar ("prudent treasury operations") | FY26 annual report / MD&A | Other income Rs.23.06 cr (+16.58% YoY); treasury income Rs.14.21 cr — and it is what carries the PAT | Confirmed |
| CARE outlook rests on sustained utilisation via the NMDC conversion arrangement | CARE rating action, 13 October 2026 | Q2 conversion-service revenue +77.33% QoQ — consistent; but no volume KPI disclosed — revenue proxy only | Partially confirmed |
Key Investment Insights
Key Positives
- Revenue grew 26.21% YoY and 13.85% QoQ to Rs.179.90 cr; H1 revenue up 44.73% YoY
- Conversion-service revenue of Rs.172.26 cr grew 77.33% QoQ and 23.63% YoY
- Quarter swung from Rs.(15.48) cr loss in Q1 to Rs.5.02 cr PAT (EPS Rs.0.08 vs Rs.(0.25))
- H1 loss narrowed to Rs.(10.46) cr from Rs.(54.95) cr in H1FY26, a Rs.44.49 cr improvement
- Pellet Plant segment returned to profit of Rs.2.81 cr after a Rs.(14.54) cr Q1 loss
- EBITDA margin improved ~13.7 pp QoQ to -3.16% despite power costs rising 57.56% QoQ
- H1 operating cash flow of Rs.18.27 cr positive against a half-year loss; FCF Rs.8.50 cr
- Net-cash position maintained: Rs.854.80 cr liquid funds vs Rs.182.92 cr lease liabilities
Risk Factors
- Core operations ex-treasury remain loss-making: P&L-derived EBITDA of Rs.(5.68) cr; PAT rests on Rs.23.06 cr of other income
- Power and fuel cost rose 57.56% QoQ to Rs.96.02 cr, absorbing 53.37% of income from operations vs 38.57% in Q1
- Net service-income block was Rs.(10.04) cr vs +Rs.20.98 cr a year ago, the least stable element
- Pellet Plant revenue collapsed 87.39% QoQ to Rs.7.54 cr
- Pig Iron Plant remains a structural loss of Rs.(1.28) cr with zero revenue; unit non-operational since 2009
- Tax charge of Rs.0.68 cr on a H1 pre-tax loss of Rs.(10.25) cr (entirely deferred tax)
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